International E&P shows the way forward

OLIVIA KABELL, Associate Editor, and KURT ABRAHAM, Editor-in-Chief and Chief Forecaster  

Over the last 12 months, the international upstream industry has experienced high investment, mounting production in non-OPEC countries, and a large expansion of LNG infrastructure. Some key factors include significant output growth in Canada, Brazil and Guyana, the slow rebuilding of Venezuelan production via eased sanctions, and high-tech exploration in certain provinces.  

Despite the short-term glut of oil on the global market, relatively high investment levels have persisted. And that trend will continue during 2026. According to our friends at Evercore, African capex will be up over 6%, while Middle Eastern spending will be up about 5.5%. South American spending should increase more than 3%, especially due to Brazil and Guyana. Asian and Australian capex is expected to be up 3%, as well (Editor’s note: You can find more of these details in the Capital Spending article in this issue).  

On the oil production front, record output levels have been achieved during 2025 in Canada (4.9 MMbpd, up 2.9%), Brazil (3.8 MMbpd, up 13.2%), Guyana (717,000 bpd, up 16.1%) and China (4.3 MMbpd, up 2.5%), contributing to a plentiful global supply despite geopolitical tensions. Meanwhile, a large, worldwide, build-out of LNG export capacity is underway, with 171% more capacity planned, led by projects in Qatar, Russia and the U.S. In the U.S. alone, eight new LNG projects or expansions are either under construction or in early commissioning phases. These projects should increase U.S. export capacity nearly 75% by 2030. 

Indicators. The number of wells drilled outside the U.S. (excluding China) last year totaled 22,555, down just 2.0% from the 23,025 wells tallied during 2023. This year, we expect international drilling to jump 4.0% higher, to 23,138 wells. Growth will be led by South America, Africa and the Middle East. Overall, offshore drilling will fare better than onshore activity, with activity expected to rise 4.8%. The offshore market will be stimulated led by deepwater activity in places like Brazil, Guyana, Namibia and the U.S. Gulf of Mexico. 

Given the aforementioned factors, along with World Oil’s surveys of international petroleum ministries and departments, our editorial staff forecasts 2026 E&P activity outside the U.S., as follows: 

• Global drilling, excluding the U.S., will increase 4.0%, Table 1. 
• Global offshore drilling is forecast to gain 4.8%, with gains expected in six of eight regions, Table 2. 
• Canadian drilling will increase 2.9%, while Mexican drilling will jump 22.7% higher. 
• Seven of eight regions are likely to post drilling gains this year.     

Meanwhile, after decreasing just 0.1% during 2024, world crude and condensate production (Table 3) reversed course and grew an impressive 2.3% during 2025, to average 84.695 MMbpd. Over the course of 2025, the U.S. increased its oil production another 356,000 bpd (per state and federal data) to average 13.590 MMbpd for the year, compared to 2024’s rate.  

NORTH AMERICA 

In the North American region excluding the U.S., activity has been restrained, as operators navigate uncertain political, economic and policy environments.  Given the upstream challenges facing Canada and Mexico, World Oil anticipates activity to increase modestly, by 3.3% across the region in 2026, for a total of 5,866 wells. Offshore drilling will decline 1.3%, down to 150 wells. 

Fig. 1. Canada is expected to register a small percentage gain in drilling during 2026. Image: DC Drilling Inc.

Canada. Despite Prime Minister Mark Carney’s more positive attitude toward oil and gas, operators remain cautious.  Canada’s oil sands last year reached an all-time high production of 3.5 MMbpd, with no signs of slowing despite flagging oil prices. The Bay du Nord project, with an estimated 400 MMbbl of oil reserves to develop, also made progress, with FEED stage expected this year.  The country looks to increase LNG output, between expansions to the Canada LNG project and a new LNG export facility slated for 2028. All told, World Oil anticipates a 2.9% increase in Canadian drilling, Fig 1. Offshore will grow 25%, albeit to 10 wells. Canadian oil production hit a record in 2025 at 4.9 MMbpd. For more information, please turn to the feature article on Canadian E&P activity in this issue. 

Mexico. In Mexico, state-owned PEMEX continues to focus on financial stability by 2027, with efforts divided between boosting oil production and keeping spending conservative. During mid-2025, Mexico marked a new all-time high in natural gas imports, and U.S. sanctions have put pressure on the country’s ability to sell to nearby Cuba.  Drilling activity in Mexico is moving further offshore with the ultra-deepwater Trion Project and continued activity for the Zama and Kan discoveries.​ Overall, World Oil anticipates drilling activity to rise 22.7%, with the offshore expected to show a similar 25.7% increase. Mexican oil output averaged 1.72 MMbpd, down 6.4%.  

Guatemala. Xan field in the Laguna del Tigre National Park (Petén region), saw its concession with Anglo-French firm Perenco end in August 2025. The government did not renew this lease, opting instead to use the land to protect the rainforest. the Xan field in the Laguna del Tigre National Park (Petén region), saw its concession with Anglo-French firm Perenco end in August 2025. The government did not renew this lease, electing instead to use the land to protect the rainforest. Perenco’s departure removed roughly 90% of Guatemala’s national oil production (6,000 to 7,000 bpd), which has been declining since 2017.  

SOUTH AMERICA 

With one of the world’s larger global oil producers of 2025 located in South America, plus four more between 700,000 bpd and 950,000 bpd, the region looks to continue ramping up output.  Much of this production and exploration activity will be focused in Guayana and Brazil.  Suriname aims to join nearby Guyana in its oil successes by 2028, and Venezuela’s future remains volatile in the face of political, economic and regulatory uncertainty.  Unsurprisingly, World Oil anticipates drilling to rise 20.3% across the region, up to 1,931 wells, with offshore activity to rise 21.8%, up to 162 wells. Regional oil output was 7.64 MMbpd, up 8.3%. 

Fig. 2. The FPSO Bacalhau achieved first oil on Oct. 15, 2025, for operator Equinor. Bacalhau field helped to push Brazil’s national production to 4.03 MMbopd during October 2025. Image: Equinor; photographer: Jan Petter Leirvǻg.

Argentina. In line with historical trends, activity in Argentina continues to focus on the Vaca Muerta shale. Late 2025 saw the country’s first long-term LNG export agreement for 2 MMtpa, as Vaca Muerta output is expected to rise to 810,000 bpd over the course of 2026. In 2025, it was 65% of the country’s total production of 781,400 bopd. In 2025, this shale was also responsible for Argentina’s biggest energy trade surplus in over 30 years. Accordingly, World Oil expects drilling to increase 15.2%, with maybe a couple of wells offshore. 

Brazil. In contrast to prior years, where the focus was on maximizing older assets, Brazil drove a large portion of global production growth in 2025 by adding new field output. The boost in output can be credited to several additions through 2025, particularly Bacalhau field (Fig. 2), which pushed Brazil’s daily production to 4.0 MMbpd for the first time during the third quarter. This level of production growth is expected to continue, with the delayed Buzíos 6 field reaching first oil early this year. Brazil’s pre-salt areas also remain an area of focus, with 12 discoveries made over the course of 2025, revitalizing interest in exploration and production for pre-salt assets.  Unsurprisingly, World Oil expects drilling to rise 73.4%. National output was 3.8 MMbopd, up 13.2%. 

Guyana and Suriname. As one of the significant producers of the globe in 2025, Guyana doesn’t look to slow down activity any time soon.  The country recently reached 900,000 bpd production, thanks to early start-up of the Yellowtail project, with plans to surpass 1 MMbpd by 2027.  The overall 2025 average was 717,000 bopd. To that end, the Uaru project is slated to start up later this year, and exploration looks to continue in the Orinduik Block.  The country also aims to support future development with expanded logistical hubs and certification frameworks.  World Oil forecasts a 16.7% rise in drilling, with the same increase in offshore activity. 

Meanwhile, Suriname looks to join neighboring Guyana in terms of oil production, with multiple discoveries offshore in late 2025.  Exploration efforts have confirmed reserves of 2.4 Boe and 12.5 Tcf of natural gas, with 10 new wells to be drilled offshore by 2027. The GranMorgu project will offer Suriname’s first oil in 2028, drawing from discoveries in Block 58. 

Colombia. Natural gas remains a focus in Colombia, with the Sirius discovery offshore slated to add 249 MMcfgd to production, starting in 2030. However, a looming gas deficit for domestic demand looks to put pressure on short-term production. Meanwhile, oil production continues to see regulatory challenges, with 2022 marking the last year that new exploration licenses were issued. World Oil forecasts drilling to increase 5.6%, with no offshore activity scheduled. Colombian oil production was 749,500, down 3.0%. 

Venezuela. In the wake of recent upheaval, the activity outlook remains uncertain in Venezuela.  Any majors other than Chevron, aiming to help raise production noticeably above 1.0 MMbopd, face long development timelines and regulatory uncertainty. The country also has production offtake and aging infrastructure issues to contend with. National oil output was 950,000 bpd, up 3.1%. All told, World Oil anticipates drilling of a relatively small number of wells to increase 57.1%. Offshore, no activity is expected.   

Cuba. Despite earlier ambitions to establish more permanent domestic oil production, Cuba must contend with the double blow of a U.S. blockade cutting off imports and disappointing exploration results. Testing for Block 9 resulted in no discoveries during late 2025, though some activity remains slated for the block. Accordingly, World Oil anticipates drilling to show no change, with no activity offshore. Cuban oil production was down 9.2%, at 25,700 bpd. 

Fig. 3. First onstream in October 1995, the venerable Heidrun field is still producing 60,000 bopd. More than 100 wells have been drilled on the field so far, and almost the same number will be drilled before the field is shut down. Image: Equinor; photographer: Elisabeth Sahl.

WESTERN EUROPE 

Activity in Western Europe continues to be a tale of two markedly different operating environments.  In Norway, activity continues to surge ahead, with steady increases in reserves thanks to regular discoveries, while in the U.K., the portrait couldn’t be more different. With stiff levies left in place in the North Sea, U.K. operators face what amounts to regulatory and economic disenfranchisement. All told, we expect regional drilling to fall 8.5%, down to 333 wells, while offshore activity will also fall 9.4%, down to 281 wells. Thanks to Norway, regional oil production was up 2.9%, at 2.69 MMbpd. 

Norway drilled a record number of wells in 2025, with high levels of activity also planned for 2026.​ Last year’s total included a record number of development wells, with exploration drilling being among the four highest years, as well. However, oil operators in Norway will drill 18% less exploration wells in 2026, as focus shifts to developing existing assets, Fig. 3.​ Hence, we predict Norwegian drilling will of off 10.9%. In addition, the country launched another licensing round in early 2026, offering 57 licenses, split between the North, Norwegian and Barents seas. This comes as some estimates suggest production at Johan Sverdrup field will decline 10% to 20% during 2026. Crude and condensate production jumped 2.8% higher, averaging 1.84 MMbpd. 

When analyzing activity, one has to realize that regulatory, political and economic uncertainty still rule most operators’ decisions. Too much activity looks to be focused on decommissioning, while permanent, stiff levies on the oil and gas industry—previously temporary—have created additional fiscal strain. Indeed, 2025 also marks the second time in a hundred years in which no onshore wells were drilled. And offshore drilling is just a fraction of what it was 10 years ago. World Oil anticipates drilling to fall 7.3%, all of it offshore. UK oil production surprisingly increased 3.3% to 613,100 bpd. 

EASTERN EUROPE/FSU 

Fig. 4. Despite Western sanctions, Russian drilling continues to run at a relatively high rate. Image: Surgutneftegas.

Russia dominates this region, comprising roughly 87% of activity. Despite economic pressure from U.S. sanctions and infrastructure strikes, Russian drilling and production remain fairly stable.​ With that in mind, we predict that regional drilling will increase slightly, up 1.3%. 

Russia. In 2025, Russia maintained, or slightly reduced, its oil and gas drilling activities and production levels despite international sanctions, while shifting its focus heavily toward Asian markets, Fig. 4. The country discovered 36 new hydrocarbon fields, adding 666 million tons (4.8 Bbbl) of oil and 686 Bcm (24.2 Tcf) of gas to its reserves. Key highlights included a 24% drop in oil and gas revenue to a five-year low at 8.48 trillion rubles, increased reliance on a "shadow fleet" of tankers, and sustained investment in Arctic and complex, hard-to-recover reserves. We forecast Russian drilling to rise 1.0%. Oil and condensate output last year was down 0.4% at 9.85 MMbpd.  

Azerbaijan. Activity in Azerbaijan remains fairly steady, though gas is increasingly a focus for the country. State-owned SOCAR aims to meet some of Europe’s demand for gas, but production realities suggest such a deal is uncertain. Even so, foreign investment in the country rose 11% in 2025. Drilling should be up 10% this year, and SOCAR partnered with MOL group on exploration efforts in a new onshore exploration block. Countrywide oil production was down 4.7%, at a little over 563,100 bpd.  

Kazakhstan. Tengiz oil field—the biggest of its kind in the region—remains a key driver for activity in Kazakhstan. However, the country faced numerous challenges with this field in 2025, which stifled production. Meanwhile, several operators are aiming to join the Zharkin exploration project, with two exploration wells to be drilled so far. Nevertheless, national oil production through 10 months last year was up 14.9%, at 2.07 MMbpd.  

AFRICA 

The Orange basin remains an area of focus, as additional discoveries within the basin encourage further activity offshore. The region remains evenly split between oil and gas activity, even as prices for oil have weakened. All told, we predict drilling to increase 9.7%, up to 1,062 wells, with offshore activity to rise 31.1%, up to 198 wells. Regional oil production tallied 7.0 MMbpd, up 5.6%. 

Angola built on earlier concession cycles with another licensing round launched in late 2025. All activity is offshore, with $1 billion committed to exploration so far.  Areas of focus include the offshore Greater Tortue Ahmeyim (GTA) area and the Etosha-Okavango basin onshore.  Understandably, World Oil anticipates drilling, all offshore, to rise 39.5% this year. The country’s oil production was down 9.2% last year, at 1.032 MMbpd. 

Egypt. In line with historical trends, Egypt remains focused on expanding gas production, with a major discovery in late 2025 adding 15 Bcf to 25 Bcf of gas to recoverable reserves. Several drilling campaigns are underway and will continue into 2026, valued at a collective $240 million.  Consequently, World Oil forecasts drilling overall to rise 6.7%, while offshore activity will see a 16% increase. 

Fig. 5. The Noble Venturer drillship spent a busy 10 months offshore Namibia, drilling the Sagittarius 1-X and Capricornus 1-X oil finds. Image: Noble Corporation.

Nigeria. Activity continues to expand offshore Nigeria, spurred on by interest from the nearby Orange basin. A $2 billion gas project aims to unlock 285 MMboe recoverable resources from the HI field discovery. The country also looks to restore gas production to OML 17, with $750 million committed so far for development. The Niger Delta offshore area saw another discovery in early 2026, and the country has offered 50 blocks as part of its most recent licensing round.  World Oil forecasts drilling to rise 18.6%, with offshore activity to increase 42.9%. Oil output gained 8.4%, to average 1.61MMbpd during 2025. 

Libya. Activity throughout Libya looks to be split between oil and gas, as the country seeks to increase oil output to 2.0 MMbpd by 2030, while balancing domestic gas demand.  To that end, the country aims to revive development for Block NC-7, unlocking up to 53 Tcfg in reserves. On the oil side, a $20 billion expansion to the Waha Oil venture in early 2026 aims to unlock 10 Bbbl of oil in place, while a new licensing round put 22 blocks on offer in late 2025. All told, our outlook is for drilling to see a marginal increase of 1.3%, with no offshore activity this year. Oil production was up 16.7%, at 1.36 MMbpd.  

Namibia. Despite earlier concerns about challenging geology, several discoveries offshore in 2025 (Fig. 5) cemented Namibia’s Orange basin as a key area of activity. PEL 85, the Damara Fold Belt, Kudu license, Mopane field and PEL 73 all show strong potential for both natural gas and condensate reserves. However, with many of these areas early in development, production activity looks to be minimal in the short term.  

Equatorial Guinea. Activity in Equatorial Guinea looks to be minimal, although the country remains focused on boosting its existing output.  An LNG development deal in third-quarter 2025 aims to unlock 3.5 Tcf of natural gas across two blocks—B/4 and EG-27.  The country also looks to launch a new licensing round later in 2026, further encouraging production growth. Drilling will remain low-level this year. The country’s oil output was down 9.1% last year, at about 79,000 bpd. 

MIDDLE EAST 

Fig. 6. Saudi Arabia is aiming to expand gas production, building on the successful start-up of the Jafurah shale field in late 2025. Image: Saudi Arabian Oil Co.

In the wake of weak oil prices and lingering surplus supply, the region is increasingly focused on gas development. Jafurah field—the largest shale field outside the U.S.—remains a point of interest as a means to increasing gas production from the region, as NOCs seek out more attractive gas markets. Overall, we forecast drilling to increase 4.6%, up to 3,006 wells, while offshore activity will increase 6.3%, up to 235 total wells. Regional oil production inched up 0.8%, to 27.38 MMbpd. 

Saudi Arabia looks to conserve spending and drilling activity in light of weakened oil prices while pursuing more gas in its energy mix. Gas production began from Jafurah field in late 2025 (Fig. 6), with aims to add 2 Bcfd to Aramco’s existing 12-Bcfd production by 2030. During 2025, $600 million in offshore contracts were awarded, targeting development of the Berri, Abu Safah, and Marjan oil fields, in anticipation of improved oil prices. Even so, Saudi’s $2 trillion Vision 2030 plan looks to see some restraint in the short term, as the country ran its third annual budget deficit since 2022. World Oil anticipates drilling to decrease 5.5%, with offshore activity falling 5.7%. Oil production gained 2.6%, to average 9.47 MMbpd, exclusive of the kingdom’s share of the Divided Neutral Zone output. 

UAE. The UAE remains focused largely on gas, with $150 billion planned to boost upstream gas capacity over the next five years. Hail and Ghasha fields are key to the country’s long-term integrated gas plans, with 1.8 Bcfd in production slated to come online by 2030, pending finished gas development. The country also aims to increase oil production capacity to 5 MMbpd by 2027, leveraging development in the Upper Zakum and Al Nasr II fields. We anticipate drilling to increase 2%, with offshore activity rising 1%. Oil production in Abu Dhabi was up 1.3%, to 3.49 MMbpd. 

Iraq. Similar to others in the region, Iraq looks to increase gas production, as oil output continues to face the pressure of short-term oversupply and weakened oil prices. Major oil development projects in Iraq focus on boosting production capacity, reducing gas flaring, and enhancing infrastructure, driven by key partnerships with international firms. Key projects include bp’s redevelopment of the Kirkuk fields, the TotalEnergies $27 billion Gas Growth Integrated Project (GGIP), and the Common Seawater Supply Project (CSSP), led by TotalEnergies. Accordingly, we expect drilling (all onshore) to rise 2.1%. Oil output slipped 0.6%, to 4.39 MM bpd.  

Iran. Upstream oil and gas activity in Iran over the last 12 months has been defined by a concerted effort to increase production capacity and attract investment despite international sanctions. In January 2025, Tehran announced a $110 billion to $120 billion investment plan through 2026 to boost crude capacity to 4.6 MMbpd and raw gas production to 1.35 Bcm/d. Among key field developments, a 20-year contract aims to boost capacity at Azadegan field from 205,000 bopd to 550,000 bopd by drilling 420 new wells; ongoing investment at South Pars field, including a $18 billion project over five years to install pressure-boosting compressors, aims to maintain output; and as of February 2026, five new upstream contracts worth over $12 billion were ratified to develop, in particular, shared oil and gas fields. The country’s oil output lost 4.1% in 2025, to average 4.125 MMbpd. 

Oman looks to focus on maximizing mature assets, with two five-year advanced recovery contracts awarded in early 2026, targeting the country’s largest oil and gas concession, in Block 6.  The country also aims to advance development in Yumna field and Block 71 to further boost oil output. World Oil anticipates drilling to increase 3%, all onshore. The sultanate’s oil production inched up 0.5%, to 997,300 bpd. 

Israel. In the wake of ongoing conflict in the region, Israel sees little new activity beyond some extensions to existing Leviathan field production. This expansion saw FID in early 2026, with plans to increase output to 21 Bcm per year, once they are complete. All told, we predict drilling will remain level with 2025’s activity, both onshore and offshore. 

Lebanon. Despite earlier exploration disappointments in Block 9, Lebanon continues to seek new resources offshore.  Seismic survey efforts began in early 2026, with aims to target Block 8.  Results of that activity should determine whether one or more exploration wells will be drilled.  

FAR EAST/SOUTH ASIA 

China continues to lead drilling activity in the region, following historical trends, while India started the year with substantial activity for the import-heavy nation.  Meanwhile, Indonesia and Malaysia look to substantially expand their oil and gas exploration efforts.  World Oil anticipates regional drilling to rise 0.7%, up to 2,079 wells (exclusive of China), with offshore activity to increase 2.9%, up to 1,239 wells. 

China. As the country that historically leads drilling activity in the region, China saw its Xijiang 24 oil project offshore begin production in late-2025, adding an 18,000 bopd at peak production. The new Xijiang 24-7 platform is China's first unmanned offshore platform for high-temperature fluid cooling and export. Meanwhile, the country has had to contend with expanded sanctions affecting many of its imports, namely from Russian and Venezuela.   

In early 2025, CNPC launched an $8.5 billion, 15-well program in the Tarim basin, targeting depths exceeding 8,000 m. Earlier, a "superdeep" borehole in the Tarim basin drilled 10,000 m, a major milestone in deep-earth exploration. Unconventional gas now accounts for about 46% of total gas output, with Sichuan shale gas and Ordos basin tight gas driving the expansion.  

China’s crude oil output hit a record-high of 215 million metric tons (just over 4.3 million bpd) in 2025, with natural gas production rising significantly. The Bohai Sea has emerged as a primary engine for growth, with CNOOC expanding output from 690,000 bopd in 2020 to about 900,000 bopd by 2025. In March 2025, CNOOC announced a major oil and gas breakthrough in the Paleozoic buried hills of the Beibu Gulf basin, with a 283-m pay zone. Another 100-million-ton oil field was identified in the Bohai Sea. 

It should be noted that since the three main Chinese state companies ceased trading on stock exchanges in the U.S. a couple of years ago, the ability to gain information on drilling efforts has diminished. However, we believe that China’s drilling continues to average between 15,000 and 16,000 wells per year. We do expect offshore activity to rise 11.2%. 

India. The E&P sector in India saw a major transformation begin toward the end of 2025 and into early 2026. While the nation generally imports much of its hydrocarbons as a refinery-heavy economy, it aims to attract up to $100 billion in investment for offshore drilling. The country also saw a gas discovery within the Ambe Block in early 2026. All told, World Oil anticipates drilling to rise 5.7%, with offshore activity to rise 15.7%. Oil output averaged 601,700 bpd, down 0.4%. 

Fig 7. Malaysia’s offshore oil production rose 7.0% in third-quarter 2025, and condensate output was up 9.7%. Image: Petronas.

Indonesia. Activity in Indonesia looks to be largely focused on existing projects, as the country works to accelerate development timelines—particularly for LNG projects. The country also aims to expand exploration both onshore and offshore, with two onshore wells to be drilled in first-quarter 2026 and 75 blocks on offer for exploration. With aims to raise production to 1.0 MMbopd by 2029, the country is encouraging outside investment into its undeveloped oil and gas basins. We forecast drilling to increase 3.4%, with offshore activity rising 5.5%. Oil production nationally was off 0.2%, at 584,200 bpd. 

Malaysia. Similar to Indonesia, Malaysia also has an eye on expanding exploration efforts. The country aims to keep production at or above 2 MMboed through 2028, Fig. 7. To that end, state-owned Petronas looks to increase the number of development and exploration wells to 100 annually by 2028. Nationally, the country aims to extend field life for existing projects in the Alum, Bemban, Permai and Kikeh oil and gas fields. That said, World Oil anticipates drilling to rise 4.3%, with offshore activity increasing at the same pace. Malaysian oil production was up 7.6%, to 513,200 bpd.  

Fig. 8. A drilling site in the Beetaloo basin of Australia’s Northern Territory, where the focus is on development of bountiful shale gas resources. Image: Government of Northern Territory.

SOUTH PACIFIC 

Australia remains the dominant driller in the region, per historical trends. Gas remains a key focus for the region, between expansions to the Gorgon LNG project in Australia and Papua New Guinea’s long-awaited LNG project. Regionally, we believe drilling will rise 24.9%, up to 226 wells, with offshore activity to increase 114%, albeit with 15 wells. 

Australia. Gas remains a focus in Australia, in keeping with past years’ activity. The Gorgon LNG project saw several contracts awarded for stage three of development, valued collectively at $225 million to $550 million. The Beetaloo basin (Fig. 8) continues to be a source of onshore activity, and major operators aim to open Officer basin to drilling during the course of 2026, unlocking 11 Bbbl of potential oil. Accordingly, World Oil forecasts drilling to rise 22.2% for 2026, with offshore activity to increase 71.4%, albeit to only 12 wells. The country’s oil output, however, dropped 9.7%, to 244,300 bpd. 

Papua New Guinea. In keeping with historical trends, Papua New Guinea’s activity levels remain minimal, while progress on the Papua New Guinea LNG project makes small-but-steady progress. Currently, the project is awaiting FID. We predict that drilling will increase by a couple of wells but stay within single digits. All activities will be onshore.